CBA (ASX: CBA) tech hiring to amp-up as it nears $200 billion valuation

CBA gets ready for a tech hiring binge…
The post CBA (ASX: CBA) tech hiring to amp-up as it nears $200 billion valuation appeared first on The Motley Fool Australia. –

Australia’s biggest bank has gotten a whole lot bigger this year. Following a strong rally in the Commonwealth Bank of Australia (ASX: CBA) share price, its market capitalisation is now within arm’s reach of $200 billion.

However, the bank’s valuation is not the only growing aspect of the company. In an interview with The AFR, CommBank’s Chief Information Officer Brendan Hopper described a growing emphasis on technology and innovation internally.

Banking on tech

Commonwealth Bank has not so secretly been building out its digital offerings. The bank already boasts the largest internal technology team in Australia with around 4,000 engineers.

However, Mr Hopper revealed this will grow by more than 650 additional engineers over the coming months. The bold hiring program comes as the bank shifts its internal software development team to a more traditional tech company structure.

Currently, the Commonwealth Bank is hiring two engineers per day. While this might seem high already, the bank is looking to increase that rate dramatically. Commenting on the hiring spree, Hopper said:

It is also part of a wider tech simplification journey, where another part is about moving the enterprise to the cloud piece by piece, eliminating the problem of needing to have data centres and shifting hardware around, because cloud just lets you treat everything as a software problem

These engineers will be working on a range of digital products under the bank’s umbrella.

Building beyond banking

This news follows Commonwealth Bank CEO, Matt Comyn’s digital banking initiatives presentation held in May. In this presentation, Comyn announced the launch of a pilot program that allows customers to view account balances from other eligible financial institutions directly in the CommBank app.

Additionally, it was revealed Commonwealth Bank had acquired a 23% shareholding in online shopping start-up Little Birdie. Subscription-based wholesale electricity provider, Amber, was also added to the bank’s investments.

These acquisitions and integrations are a part of CBA’s attempt to push beyond simply being an ASX-listed bank. Instead, the company sees its future as being a customer-facing tech platform. Offering an ecosystem that engages consumers beyond their banking experience.

CBA tops ASX most valuable

With the Commonwealth Bank share price soaring to recorded highs in recent weeks, the bank is now ASX’s most valuable company. At the time of writing, its market capitalisation is hovering around $178 billion.

The valuation puts ASX-listed CBA just outside the top 100 largest listed companies in the world. Its value wedges it between US giants Starbucks and IBM.

The post CBA (ASX: CBA) tech hiring to amp-up as it nears $200 billion valuation appeared first on The Motley Fool Australia.

Should you invest $1,000 in Commonwealth Bank right now?

Before you consider Commonwealth Bank, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Zero ASX brokerage? Popular broker Stake is launching ASX share trading

ASX 200 up 1.3%: Soul Patts-Milton merger, IGO jumps

Leading brokers name 3 ASX shares to sell today

Top broker says the Commonwealth Bank (ASX:CBA) share price is still overvalued
Why are blue-chip ASX 200 shares selling off today?

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starbucks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short July 2021 $120 calls on Starbucks. The Motley Fool Australia has recommended Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!